Colossus 2 data center, Memphis, Tennessee

xAI operates Colossus 2, an AI data center in Memphis, Shelby County, Tennessee, that is already running and still expanding; the research group Epoch AI estimates it now draws about 946 megawatts of power, running Nvidia B200 and B300 chips worth an estimated $35.8 billion. Anthropic, Cursor and SpaceXAI use the computing power there, and Epoch AI projects the site will reach about 1,531 megawatts by early 2027.

To power the site quickly, xAI installed natural gas turbines just across the state line in Southaven, Mississippi, which Epoch AI says may have been a way to secure faster approval for their operation. A company filing described the compute cluster as roughly 110,000 GB200 processors running on about 210 megawatts of power.

In April 2026 the NAACP sued xAI and its subsidiary MZX Tech in federal court in the Northern District of Mississippi, saying the companies run 27 gas turbines in Southaven without an air permit that could emit more than 1,700 tons of smog-forming nitrogen oxides and up to 19 tons of formaldehyde a year near homes, schools and churches. "A data center should not be a potential death sentence for a community's health," said Abre' Conner, the NAACP's director of environmental and climate justice. The Mississippi Department of Environmental Quality has said the turbines are portable units covered by the Clean Air Act's mobile source provisions, and the NAACP asked in May for a preliminary injunction to stop them.

In June 2026 the Department of Justice asked to join the case and have it dismissed, backed by a Defense Department official who said Grok, trained on Colossus 2, is used for national security work, while Mississippi Gov. Tate Reeves wrote that the NAACP was "seeking to materially slow or outright stop the largest private investment in Mississippi's history." The federal judge in the Northern District of Mississippi has not yet ruled on the request to halt the turbines.